The Office of Natural Gas & Petroleum Import & Export Activities prepares quarterly reports showing natural gas import and export activity. Companies are required, as a condition of their authorizations, to file quarterly reports. This report is for the third quarter of 2001 (July through September).

Attachment A shows the percentage of takes to maximum firm contract levels and the weighted average per unit price for each of the long-term importers during the 5 most recent quarters.

Attachment B shows volumes and prices of gas purchased by long-term importers and exporters during the past 12 months.

Attachment D shows the gas exported on a short-term/spot market basis to Canada and Mexico.

Third Quarter Highlights: Changes in activity compared to the third quarter of 2000.

Canadian Imports

LNG Imports

Mexican Imports

Total Imports

Canadian Exports

Mexican Exports

Japanese Exports

Total Exports

971.3 Bcf

66.0 Bcf

-0-

1,037.3 Bcf

27.9 Bcf

48.2 Bcf

17.0 Bcf

93.1 Bcf

up 11%

down 10%

up 10%

up 121 %

up 52%

same

up 52%

Puerto Rican Imports

7.7 Bcf

up 17%

The Puerto Rican imports are shown in the tables above and on the next page, and in Attachment B-1. These imports are not reflected in any of the totals found on this page, as the summaries are only for trade pertaining to the continental U.S.

Prices continued to decline this quarter. The average long and short-term import prices for this quarter were $3.09 and $2.87 per MMBtu, respectively. This represents a substantial decrease compared to last quarter's long and short-term prices of $4.42 and $4.71, respectively, and compared to January's high prices of $8.66 and $9.72 for long and short-term imports, respectively.

Third Quarter Data: Comparing third quarter 2001 to third quarter 2000 data, long-term Canadian imports and LNG imports both decreased. Natural gas imports under all long-term contracts totaled 240.0 Bcf, compared to 355.8 Bcf in the third quarter 2000. Long-term Canadian imports decreased 31 percent (225.3 v. 326.9 Bcf). The average price of this gas was $3.09 per MMBtu, which is $1.46 lower than the preceding quarter and 74 cents or 19 percent lower than the third quarter 2000. Long-term LNG imports decreased 49 percent compared to the third quarter 2000 (14.7 v. 28.9 Bcf). Distrigas imported 8.7 Bcf from Trinidad at an average price of $3.42 per MMBtu, but did not have any imports from Algeria. Duke imported 6.0 Bcf from Algeria at $2.40 per MMBtu.

During the third quarter, 97 companies used short-term authorizations to import 797.4 Bcf, which is a 35 percent increase over the third quarter 2000 (589.8 Bcf). Of this total, 746.0 Bcf was imported from Canada at an average price of $2.84 per MMBtu, compared to 544.9 Bcf at $3.88 in the third quarter 2000, and 681.7 Bcf at $4.75 in the previous quarter. There were no imports from Mexico this quarter, compared to 0.2 Bcf at $4.88 in the third quarter 2000 and 2.3 Bcf at $5.10 last quarter. Short-term LNG imports totaled 51.3 Bcf for the quarter, compared to 52.2 Bcf last quarter and 44.7 Bcf in the third quarter 2000. BP Energy imported 2.4 Bcf from Australia at $3.29; 2.4 Bcf from Nigeria at $2.77; and 2.4 Bcf from Qatar at $3.23. CMS imported 2.6 Bcf from Nigeria at $3.15 and 7.4 Bcf from Qatar at $3.20. Tractebel imported 10.4 Bcf from Algeria at $2.74 and 2.6 Bcf from Trinidad at $2.74. Distrigas imported 8.2 Bcf from Trinidad at $3.97; Duke imported 1.4 Bcf from Algeria at $2.30; Enron imported 6.0 Bcf from Oman at $4.09; Mirant imported 2.9 Bcf from Nigeria at $4.58; and Fina imported 2.6 Bcf from Nigeria at $2.69.

Short-term imports from Canada by point of entry:

Point of Entry

% of Imports

Wt. Avg. $

Port of Morgan, MT

Eastport, ID

Sherwood, ND

Noyes, MN

Sumas, WA

Calais, ME

Niagara Falls, NY

Waddington, NY

Other

23

21

18

13

9

5

4

2

3

$2.90

$2.86

$2.79

$2.76

$2.62

$2.89

$3.16

$3.02

$2.85

In addition, 13 short-term export authorizations were used to export 76.1 Bcf. Eight companies exported 27.9 Bcf to Canada at an average price of $2.95 per MMBtu; 5 companies exported 48.2 Bcf to Mexico at $3.07; and 17.0 Bcf of LNG was exported to Japan at $4.28 (delivered).